Updated October 16, 2026. Quick answer: 1099-MISC box 12 and box 15 keep the same numbers in the December 2026 and 2025 forms. Box 12 “May show current-year deferrals as a nonemployee under a nonqualified deferred compensation (NQDC) plan that is subject to the requirements of section 409A”, and box 15 “Shows income as a nonemployee under an NQDC plan that does not meet the requirements of section 409A.” Of the two, only box 15 goes on the return: “Report this amount as income on your tax return.”
Schedule 2 (Form 1040) for 2025, read line by line: Schedule 2 lines 17g to 17k.
Schedule 1 (Form 1040) for 2025, read line by line: Schedule 1 lines 8t to 8z.
The employee copy of Form W-2, read box by box: W-2 boxes 10 to 20 and W-2 box 11.
Edition and box numbers
The December 2026 revision of the recipient copy and of the payer instructions was the primary read for this page. Boxes 12 and 15 carry the same numbers on the 2025 form, so unlike other 1099-MISC boxes they are not renumbered. The numbering that moved is next door: on the 2025 form “Box 14. Reserved for future use.” and box 13 was the FATCA filing requirement box, while the December 2026 form uses boxes 13a, 13b and 14 for cash tips, tipped occupation codes and overtime. irs.gov served both editions on October 16, 2026. Check the revision printed on the form you received, because the box next to 12 and 15 differs by year. The other boxes are set out in the 1099-NEC and 1099-MISC boxes guide.
Who gets boxes 12 and 15
The payer instructions treat these boxes as part of a short list of payments reported once they reach a dollar floor. The 1099-MISC instructions list payers’ duties this way: “At least $2,000 in:” followed by a numbered list that includes “Section 409A deferrals (box 12)” and “Nonqualified deferred compensation (box 15)”. So a form with these boxes filled in comes from a payer that treated you as a nonemployee, and not as a W-2 employee.
The employee versions of the same ideas sit on the W-2. The payer instructions point there: “For deferrals and earnings under nonqualified deferred compensation (NQDC) plans for employees, see the General Instructions for Forms W-2 and W-3.” Those employee amounts are explained on the W-2 box 12 code Y page and the W-2 box 12 code Z page. This page covers only the nonemployee form.
Box 12: section 409A deferrals
The recipient copy describes the box this way: “May show current-year deferrals as a nonemployee under a nonqualified deferred compensation (NQDC) plan that is subject to the requirements of section 409A plus any earnings on current- and prior-year deferrals.” The wording is conditional, because the payer is not always required to fill it in.
The payer instructions say so directly: “do not have to complete this box”. “If you complete this box, enter the total amount deferred during the year of at least $2,000 for the nonemployee under all nonqualified plans.” “The deferrals during the year include earnings on the current year and prior year deferrals.” A blank box 12 therefore does not prove that no deferral exists, and a filled box 12 is a payer-reported total across all of the nonemployee’s nonqualified plans.
The recipient instruction for box 12 describes what the box may show. The instruction that tells you to report an amount as income is the one for box 15, so compare the box 12 number with your plan statements and look at box 15 for the part treated as income.
Box 15: income under a failed NQDC plan
Box 15 is the box that creates income. The recipient copy says: “Shows income as a nonemployee under an NQDC plan that does not meet the requirements of section 409A.” The payer instructions give the filing rule: “Enter all amounts deferred of at least $2,000 (including earnings on amounts deferred) that are includible in income under section 409A because the NQDC plan fails to satisfy the requirements of section 409A.”
Two exclusions limit what a payer puts here. “Do not include amounts properly reported on a Form 1099-MISC, corrected Form 1099-MISC, Form W-2, or Form W-2c for a prior year.” “Also, do not include amounts that are considered to be subject to a substantial risk of forfeiture for purposes of section 409A.” The first keeps an amount from being reported again after it was already reported; the second keeps amounts out of box 15 that are still at risk of being forfeited. A plan that fails section 409A is the subject of the page on 409A distribution elections, which is the better place to read about how elections interact with the rules.
How box 12 and box 15 connect
The two boxes are connected by one sentence on the recipient copy: “Any amount included in box 12 that is currently taxable is also included in this box.” Box 15 is therefore not an additional pile of money on top of box 12. Part of a box 12 total can reappear in box 15 because it is currently taxable.
Here is a labelled illustration, not an IRS example, of how the sentence reads. Suppose box 12 shows $30,000 and $10,000 of it is currently taxable. Under the quoted sentence box 15 includes that $10,000. The other $20,000 (the difference between $30,000 and $10,000) is the part of the box 12 total that is not described as currently taxable on the form.
| Box | What it shows | Recipient handling |
|---|---|---|
| Box 12 | Current-year deferrals and earnings under a plan that is subject to section 409A | Description only; payer may leave it blank |
| Box 15 | Income under an NQDC plan that does not meet section 409A; includes any box 12 amount that is currently taxable | Report as income on your tax return |
Where box 15 goes on your return
For box 15 the recipient copy gives the destination: “Report this amount as income on your tax return.” It adds: “This income is also subject to a substantial additional tax to be reported on Form 1040, 1040-SR, or 1040-NR.” “See the instructions for your tax return.” The additional tax is calculated on the return itself and is not a figure printed on the 1099-MISC.
The same form carries a general warning for the whole page: “Amounts shown may be subject to self-employment (SE) tax.” “Individuals should see the Instructions for Schedule SE (Form 1040).” How that tax works for people paid on a 1099 is covered on the self-employment tax page, and the form-level view of every box is in the Form 1099-MISC overview.
If the amounts look wrong
A payer that reported something incorrectly is not left to you to fix by editing the form. “If this form is incorrect or has been issued in error, contact the payer.” “If you cannot get this form corrected, attach an explanation to your tax return and report your information correctly.” That route applies to boxes 12 and 15 as it does to every other box on the form.
Common mistakes
- Adding box 12 and box 15 together as if they were separate income. The recipient copy says any box 12 amount that is currently taxable is also included in box 15, so the two can overlap.
- Entering the box 12 total on the return as income. The recipient copy describes box 12 as deferrals that may be shown, and sends only the box 15 amount to be reported as income on your tax return.
- Treating a blank box 12 as proof that nothing was deferred. The payer instructions say the payer does not have to complete box 12, so a plan statement can show a deferral the form leaves out.
Related: W-2 box 12 code Y, W-2 box 12 code Z, 409A distribution elections, self-employment tax explained, and quarterly estimated taxes.
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- Form 1099-MISC, Miscellaneous Information (Rev. December 2026), recipient copy: https://www.irs.gov/pub/irs-pdf/f1099msc.pdf
- Form 1099-MISC, Miscellaneous Information (2025), recipient copy: IRS archived PDF (irs.gov)
- Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026): https://www.irs.gov/pub/irs-pdf/i1099mec.pdf
Read from the IRS documents linked above on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.